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Evaluate what is the cash flow present value

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Reference no: EM132969430

Consider a cash flow that arrives in 4 years and has an expected value of 200. Suppose the risk-free rate is 4%. The cash flow's beta is 0.8 and the variance of the cash flow is 1.3. Further suppose the risk premium on the market portfolio is 5%.

Problem 1: What is the cash flow's present value?

Reference no: EM132969430

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